Filed Under:Life Insurance, Life Planning Strategies

Ultra-Wealthy Will Transfer $27 Trillion by 2050

Among ultra-high-net-worth investors, it’s estimated that $27 trillion will pass from one generation to the next by 2050, a study released May 7 by Morgan Stanley Private Wealth Management and Campden Wealth found.

The report, “Next-Generation Wealth: The New Face of Affluence,” surveyed 53 families, 73% of which had a net worth of more than $100 million. The “next generation,” those between ages 20 and 49, represented 45% of respondents.

Despite their high level of wealth, most respondents said they took an informal approach to educating their children about money, focusing on budgeting, asset allocation and getting to know advisors. Nearly half of the next generation look to advisors for education. The report noted wealthy families frequently use a primary advisor as a “quarterback” to execute plans and coordinate efforts between other advisors. Philanthropy is a popular way for families to teach their children about wealth. The report found 73% of next-generation parents and 56% of older-generation parents use philanthropy to teach about wealth.

“For ultra-affluent families, wealth transfer can be a complicated process, both emotionally and practically. A goal of the research is to provide unique insights into the needs and concerns of the next generation and those of their elders as they face the challenges of wealth transition,” Douglas Ketterer, head of Morgan Stanley Private Wealth Management in the United States, said in a statement. One implication of the findings for advisors, Ketterer said, is that “they need to think like family advisors in the fullest sense, attuned to the attitudes and psychological disconnects that may exist between generations.”

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Nichole Morford

Nichole Morford
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